In Illinois, Treasurer Michael Frerichs is celebrating a significant milestone for the state’s flagship 529 college savings plan, Bright Start 529, which has seen a surge to over $14 billion in assets as it commemorates its 25th anniversary during College Savings Month, according to a press release from the Illinois State Treasurer's Office. Recognized nationally for its performance, the plan earned accolades from Morningstar as a top pick for education savers, while CNBC.com branded it one of the nation's best college savings plans. Business Insider further cemented its reputation as a top-rated 529 plan.
As September ushers in the focus on future educational savings, Treasurer Frerichs, a father himself, understands the parents’ need for financial preparedness for their children's education costs, and he relayed his insights saying, "Parents can sleep better at night knowing they're prepared to pay for future education when the time comes," in a press release from the Illinois State Treasurer's Office. Under Treasurer Frerichs' watch, the Bright Start 529 plan has expanded significantly, now managing over 327,000 accounts and, in this year alone, has witnessed the opening of 22,000 new accounts while account owners contributed approximately $800 million for college savings.
The Illinois State Treasurer's Office also sponsors the Bright Directions 529, tailored for families working with financial advisors, with an overarching aim of fostering a “college-going culture.” Combined, the IL 529 College Savings plans boast more than $22 billion in assets, covering an array of educational expenses across universities, colleges, vocational programs, and apprenticeships utilized by over a quarter of a million students to date.
One of the distinct advantages of Bright Start 529 includes its unique tax benefits which allows for tax-free withdrawals on qualified expenses and state taxable income reduction for Illinois taxpayers, which impressively aligns with the affordability goals of many parents; another Chicago resident, Marlén Cortez Morris, shared her satisfaction by stating, "We kept coming back to Bright Start given how well it's performed and its reputation, it's professionally managed, so we can trust that we don't need to watch it every day." This sentiment underscores the plan's low fees and a wide range of investment options, customized to fit varying financial situations and savings goals.
For those weighing their options in college savings, Bright Start 529 merits consideration not just for the potential tax benefits, but for the flexible and low-cost approach to managing future education expenses; however, the Illinois State Treasurer's Office urges investors to review fund prospectuses and disclosure statements before committing funds. While every investment comes with inherent risks described in these official documents, the historically strong performance of Bright Start 529 certainly casts a long shadow for prospective 529 investors in Illinois and beyond.
